FX.co ★ Natural Gas Rises Further to 3-Year High

In early December, U.S. natural gas futures climbed to a three-year peak of $4.95 per MMBtu, marking a 65% increase since mid-October's low points, driven largely by surging export demand. European nations continue to distance themselves from Russian natural gas, affirming a complete phase-out of Russian LNG by the close of 2027. Concurrently, data revealed a significant annual rise in U.S. LNG exports, up 40% in November to 10.7 million tonnes, despite ongoing production increases. This demand was further bolstered by forecasts predicting a cold spell ushering in the North American winter, notably impacting the Northeast and Great Lakes regions with reduced temperatures. As a result, the latest data from the EIA indicated an unexpected withdrawal of 11 billion cubic feet of gas from storage for the week ending November 21, heralding the onset of the seasonal withdrawal period.